Elering Signs Financing Agreement for Balticconnector Research

Elering has signed a financing agreement with the European Commission for research into the Estonian-Finnish gas connection Balticconnector.

The European Union is supporting research related to the construction of Balticconnector from the Connecting Europe Facility (CEF) energy programme. CEF will cover 50 per cent of the research expenses, a total of 5.4 million euros. The subsidy is set to be shared between the Estonian and Finnish gas system operators.

“Balticconnector, which will physically connect Estonia’s and Finland’s gas networks, is essential for the improvement of the security of gas supply in Estonia, Finland and the Baltic States in general. Balticconnector will also stimulate the development of a single Baltic-Finnish gas market. Elering is working towards submitting an application within 2015 for the financing of the connection’s construction,” said Chairman of the Elering Board, Taavi Veskimägi.

During the research stage, business analyses will be conducted in order to evaluate the economic influence of the Balticconnector; plans will be drawn up for projects for gas transmission pipelines and compression stations located on the mainland; the environmental effects on the offshore section will be evaluated; and complementary engineering-geological and geodetic research will also be carried out. In addition, the Balticconnector construction procurement will be put to tender.

Along with the signing of the research financing agreement, the Estonian and Finnish gas transmission network operators have concluded a co-operation agreement on the working arrangements for the research stage. The environmental impact assessment report on the offshore section of Balticconnector has already been completed and is available for public commentary.

The Balticconnector gas infrastructure project will include three sections: 47 kilometres of mainland pipeline from Kiili to Kersalu in Estonia; an 80-kilometre submarine gas pipeline from Pakri Peninsula to Inkoo in Finland; and a further 22 kilometres of mainland pipeline from Inkoo to Siuntio. Compression stations will be built on either side of the Gulf of Finland. The planned transmission capacity of the Balticconnector is 7.2 million cubic metres of natural gas per day.